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Determining and
Interpreting Associations
Among Variables
Ch 18 2
Associative Analyses

Associative analyses: determine
where stable relationships exist
between two variables

Examples

What methods of doing business are
associated with level of customer satisfaction?

What demographic variables are associated
with repeat buying of Brand A?

Is type of sales training associated with sales
performance of sales representatives?

Are purchase intention scores of a new product
associated with actual sales of the product?
Ch 18 3
Relationships Between Two
Variables

Relationship: a consistent, systematic
linkage between the levels or labels for
two variables



“Levels” refers to the characteristics of
description for interval or ratio scales…the
level of temperature, etc.

“Labels” refers to the characteristics of
description for nominal or ordinal scales,
buyers v. non-buyers, etc.

As we shall see, this concept is important
in understanding the type of relationship…
Ch 18 4
Relationships Between Two
Variables

Nonmonotonic: two variables are
associated, but only in a very general
sense; don’t know “direction” of
relationship, but we do know that the
presence (or absence) of one variable
is associated with the presence (or
absence) of another.

At the presence of breakfast, we shall
have the presence of orders for coffee.

At the presence of lunch, we shall have
the absence of orders for coffee.
Ch 18 5
Nonmonotonic Relationship

Ch 18 6
Relationships Between Two
Variables

Monotonic: the general direction of a
relationship between two variables is
known

Increasing

Decreasing

Shoe store managers know that there is
an association between the age of a child
and shoe size. The older a child, the
larger the shoe size. The direction is
increasing, though we only know general
direction, not actual size.
Ch 18 7
Monotonic Increasing
Relationship
Ch 18 8
Relationships Between Two
Variables

Linear: “straight-line” association
between two variables

Here knowledge of one variable will
yield knowledge of another variable


“100 customers produce $500 in
revenue at Jack-in-the-Box” (p. 525)
Ch 18 9
Relationships Between Two
Variables

Curvilinear: some smooth curve
pattern describes the association

Example: Research shows that job
satisfaction is high when one first
starts to work for a company but goes
down after a few years and then back
up after workers have been with the
same company for many years. This
would be a U-shaped relationship.
Ch 18 10
Characterizing Relationships
Between Variables
1. Presence: whether any systematic
relationship exists between two
variables of interest
2. Direction: whether the relationship
is positive or negative
3. Strength of association: how strong
the relationship is: strong?
moderate? weak?

Assess relationships in the order

shown above.
Ch 18 11
Cross-Tabulations

Cross-tabulation: consists of rows and
columns defined by the categories
classifying each variable…used for
nonmonotonic relationships

Cross-tabulation table: four types of
numbers in each cell

Frequency

Raw percentage

Column percentage

Row percentage
Ch 18 12
Cross-Tabulations

Using SPSS, commands are
ANALYZE, DESCRIPTIVE
STATISTICS, CROSSTABS

You will find a detailed discussion of
cross-tabulation tables in your text,
pages 528-531.
Ch 18 13

Cross-Tabulations
Ch 18 14
Cross-Tabulations

When we have two nominal-scaled
variables and we want to know if
they are associated, we use cross-
tabulations to examine the
relationship and the Chi-Square test
to test for presence of a systematic
relationship.

In this situation: two variables, both
with nominal scales, we are testing
for a nonmonotonic relationship.
Ch 18 15
Chi-Square Analysis

Chi-square (X2) analysis: is the
examination of frequencies for two
nominal-scaled variables in a cross-
tabulation table to determine whether
the variables have a significant
relationship.

The null hypothesis is that the two
variables are not related.

Observed and expected frequencies:
Ch 18 16

Cross-Tabulations

Example: Let’s suppose we want to
know if there is a relationship
between studying and test
performance and both of these
variables are measured using
nominal scales…
Ch 18 17
Interpreting a Significant
Cross-Tabulation Finding

If the chi-square analysis determines
that you have a significant
relationship (no support for the null
hypothesis) you may use the
following to determine the nature of
the relationship:

The column percentages table or

The raw percentages table
Ch 18 18
Cross-Tabulations

Did you study for the midterm test? __yes
__no

How did you perform on the midterm test?
__pass __fail


Now, let’s look at the data in a crosstabulation
table:
Did You Study f or t he Test ? * How Did You Perf orm on t he
Test ? Crosst abulat ion
Count
77 2 79
3 18 21
80 20 100
Yes
No
Did You Study
for the Test?
Total
Pass Fail
How Did You Perform
on the Test?
Total
Ch 18 19
Cross-Tabulations

Do you “see” a relationship? Do you “see” the
“presence” of studying with the “presence” of
passing? Do you “see” the “absence” of
passing with the presence of not studying?

Congratulations! You have just “seen” a
nonmonotonic relationship.
Did You St udy f or t he Test ? * How Did You Perf orm on t he
Test ? Crosst abulat ion

Count
71 6 77
7 16 23
78 22 100
Yes
No
Did You Study
for the Test?
Total
Pass Fail
How Did You Perform
on the Test?
Total
Ch 18 20
Cross-Tabulations

Bar charts can be used to “see”
nonmonotonic relationships.
Did You Study f or the Test?
NoYes
Count
100
80
60
40
20
0
How Did You Perf orm
Fail
Pass

Ch 18 21
Cross-Tabulations

But while we can “see” this
association, how do we know there
is the presence of a systematic
association? In other words, is this
association statistically significant?
Would it likely appear again and
again if we sampled other students?

We use the Chi-Square test to tell us
if nonmonotonic relationships are
really present.
Ch 18 22
Cross-Tabulations

Using SPSS, commands are
ANALYZE, DESCRIPTIVE
STATISTICS, CROSSTABS and
within the CROSSTABS dialog box,
STATISTICS, CHI-SQUARE.
Ch 18 23
Chi-Square Analysis

Chi-square analysis: assesses
nonmonotonic associations in cross-
tabulation tables and is based upon
differences between observed and
expected frequencies


Observed frequencies: counts for
each cell found in the sample

Expected frequencies: calculated on
the null of “no association” between
the two variables under examination
Ch 18 24
Chi-Square Analysis

Computed Chi-Square values:
Ch 18 25
Chi-Square Analysis

The chi-square distribution’s shape
changes depending on the number of
degrees of freedom

The computed chi-square value is
compared to a table value to
determine
statistical
significance

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